Advances in development tools have tremendous potential for increasing productivity, cost savings and innovation. To reap the full benefits of such technologies, though, companies need to avoid some common pitfalls.

Innovation has become the defining challenge for global competitiveness. The authors show the degree to which location matters for successful innovation at the global technology frontier. Such locational advantages help to explain an apparent paradox of globalization: Ideas and technologies that can be accessed at a distance cannot serve as a foundation for competitive advantage.